CPAR (PA REVIEW SCHOOL OF THE PHILIPPINES Maria MAS 8700-Econ [MANAGEMENT ADVISORY seRvices ECONOMICS 1 1 both the supply andthe demand fora good increase, the market price wil 2. Rise only inthe case ofan inelastic supply function, ‘Fall only in the case of an Inelastic suppiy function, Not be predictable with only these facts 4. ise only inthe case ofan inelastle deriand function, 2. A supply curve ilustrates the relationship between 2. Price and quantity supplied Price and quantity demanded . Price and consumer tastes 4. Supply and demand 3. AS a business owner you have determinec that the demand for your product is inelastic. Based upon this assessment you understand thet ‘a. Increasing the price of your product wil increase total revenue '. Decreasing the price of your product wil increase total revenue Increasing the price of your product will have no effect on total revenue 4. Increasing the price of your product wil increase competition ‘4. Which one ofthe folowing has an inverse relationship withthe demand for money? ‘8. Aggregate income Interest rates . Price levels d. Flow of funds 5. An improvement in technology that in turn leads to improved worker productivity would most likely resutt in 2. A shift to the right in the supply curve and @ lowering of the price ofthe output . A shift to the left inthe supply curve and a lowering ofthe price ofthe output An increase inthe price ofthe output f demand Is unchanged. 4. Wage increases. ‘8 Which ofthe following market features is likly to cause a surplus ofa particular product? 3. A monopoly c Aprice caling b. Appice floor d. A perfect market 7. A decrease in the price of a complementary good wil a. shift the demend curve of the joint canimodity tothe left >. increase the price paid fora substitute good shift the supply curve ofthe joint commodity to the right 4. shift the demand curve ofthe joint commecity to the right '8 Demand for a product tends to be price inelastic if 2, the product is considered a luxury item few good complements forthe product are available &_the population in the market area is large 4d. people spend a large share of their income on the product ‘9. Which ofthe following has the highest price elasticity coefficient? 2. Milk Bread Macaroni and cheese d.Ski boats 10. The local video store's business increased, by 12% after the movie theater raised its prices {rom P65 to P70. Thus, relative to movie theater admissions, videos are 2, substitute gocds ‘G._complementary goods ._ superior goods . Only demand factors determine price and output c. Firms are not allowed to enter or ext the industry 4. All inputs are variable 37, What is the main factor that diferentiates tre short-un cost function from the fong-un cost function? '8. Nothing, the two functions are identica _c. Changes in government subsidies The level of technology 4d. The nature ofthe costs 38, If consumer confidence falls the impact upon the economy is & Adonntumn An upturn No change 4. Consumer confidence does not have an impact upon the ‘economy 39. During the recessionary phase of a business [oo [aa [ac [ao [ac 2A [iz c [22 ¢ [ac [ae 0 | 52 cee ct A fed [92 w 30a [43.0 [23.¢ [33.0 [43.0] 53.0 63a] 73.0 | 93.c 193A 4C [148 [4B [34 B [44D [54.8 feu A174 C bet 0 5A [15.0 [25.0 [35.0 [45.C_| 55.0 (65. C175. D 85. B 6.8116. A |26.B [36.0 [46.0 [56.C [65.A [76a [06. 7.0 [17 a_|27.¢_[37.b [arc |s7.a [67.8 |7. 8 [87. A BD /18.A 128.0138. A [48 A|58.A [68a {78.8 | 88. D ma 9.0 ]19.¢_]29.a_]39.c [43.0 [59a {6s C [79 ¢[o9. ¢ 0A [20.8 130. A [40.¢ [$0.0 [60.8 [70 ceo. c [90.6